The survey did, however, show one positive sign. The overall index, a combined measurement of current business conditions and future sentiment, remained positive for the third quarter in a row, which is thelongest stretch since 2008. More than half of the small firms remain pleased with their current financial situation.

"We are moving in the right direction. Most small busineses see the glass half full, they just realize the glass isn't as large as they'd like it to be," said Mark Vittner, a senior economist at Wells Fargo.